Savers are losing purchasing power quietly!

[bhadz]

There are still a lot of my countrymen that are not dealt with investing. What they do is they save their money in the banks and are fine with the few percentage of accrued interest for the time deposits that they do from the banking products that are offered to them. We've got also digital banks that offers better interest than the actual brick and mortar banks. I think there is a chance that a saver will eventually learn how to invest. They will understand why their money's purchasing power is decreasing and that's the time, they'll get curious about investing.

[Versatile_choice]

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

You don't loss money rather the value is the only thing that fade away especially when you're saving for a particular goods, before you can save up enough money to purchase the goods let's say if the goods is worth $5,000 and your intention is to confirm the price so you can start saving up, before you could save up that $5,000 a little amount will be added it's just as if the price of goods and services keep rising every blessed day/ weeks, saving in the bank is no longer an option I have always considered saving in bitcoin as the best option.

[Marvelockg]

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

Purchasing power of money drop because an economy isn't doing so well relative to the way the price of things are constantly skyrocket.  As the value of fiat constantly reduces based on bad economic performance everything that's fiat related suffers In same vain and saving in fiat for whatsoever reason cause two major thing. It's either the value of your money remains the way it is while the purchasing power reduces or everything act negatively and inflation eats into you.

The Era of saving has long gone with the priority on the conventional banking system going down by the day. If you can't invest in a thing that keeps the value of your asset intact, your savings will eventually get eaten by the effect of inflation that happens also as a result of a reduction in the purchasing power of money.

[HONDACD125]

Purchasing power is how much commodities your money can buy.

One area that is less talked about is how saving money in the bank can slowly reduce its value over time.

If a commodity can be bought for a certain amount and the price of that commodity increases, the value of your money would have been reduced by the increased amount.

When money is saved in your account, annual interest is accrued at a certain percentage, but people do not consider the inflationary rate which is always at a higher percentage.

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

There's nothing new in that, this subject has been discussed like a million times. I don't know if some people still don't understand this but anyone who is living in a country where inflation keeps going higher over time, and they can see, observe, and understand this, they should know that money kept in currencies or assets with fixed values will lose purchasing power over time, because as time goes by, the price of goods and services will keep increasing if inflation is rising, but if your money is kept in a currency or asset with a stagnant value, they will stay the same even after a decade, because if you have saved $100k, you will still have $100k, or maybe a bit more if you are getting interest on that.

Why else do you think are people loving Bitcoin so much? Because they see hope in it, they can see that its value only goes up in the long run, which means that if you are saving your money in Bitcoin, you can expect to get more value for it after a decade or so, or maybe even before then, which is why so many people consider Bitcoin a safe haven when it comes to saving their wealth from inflation and from bad economies.

[lizarder]

When money is saved in your account, annual interest is accrued at a certain percentage, but people do not consider the inflationary rate which is always at a higher percentage.

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

This is quite interesting and why saving money in the bank is not a wise decision in conditions of financial freedom because the essence of the money loses value based on growth performance so that other factors influence it such as the inflation rate and the increase in prices of goods which are never controlled every year. I remember that my parents always said one thing, where they suggested saving money in the form of gold because now it is proven that these words are much more relevant than people who say it is better to save.

We do not lose money because it is stolen, but its value continues to decrease so that the potential for achieving financial freedom is far from expectations and on the contrary, this is an important lesson for all of us so that the placement of money must really be done so that in the future we can achieve financial freedom as planned well and this all needs to be prepared carefully.

[AprilioMP]

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

This is nothing new, except for people who only know money as a means of payment without any other knowledge, such as how fiat currency works.
When money is deposited in a bank account in large amounts, satisfaction only comes when people know they have a lot of money, but for people who understand how money works, this can be considered very foolish because the interest rate will not be enough to cover the loss in value of the money itself.
This is an era where people are more interested in assets that are better protected.

[demonica]

Well for me, saving isn't really a bad idea. We all have different reasons for saving money in bank. Like for example, someone is saving money in the bank for 3 years cause he has a plan of using the money to buy an asset or a property. It’s not like everyone is saving money in bank for decades or until they grow old. Some people save money for a couple of years because they have a goal to achieve and they can’t do it yet in the mean time so they need to save up for couple of years to reach their target goal. Regardless if you save money in bank or not, inflation is there and a lot of people can’t cope up with the rise of inflation resulting to declining of purchasing power.

I also don’t like saving all of my money in bank cause it won’t really bring me that much compared to investing it. But i save some of it in the bank cause i have a separate goal/purpose for that. Then I put the rest in investing.

[Agbe]

You are right, most people are saving their money in the bank but they don't know that in the long run they gain nothing from it. Saving money is just the same as delaying the inevitable because there is no value added to the money you saving, you are just going to end up spending it all at some point and the purchasing power would be reduced due to economical factors, instead of saving in the bank invest ik bitcoin.

[Iroh]

Having your money saved up in the bank is not necessarily a bad idea. That way, you can always have liquid cash at hand and at the ready for whatever emergency that may pop up. It is quite safe and insured and you get a little something on top of the principal amount that you put in.
Yeah, having investments is great as if you seek to grow your wealth, you ought to invest your money into projects that would yield a return, giving you some nice profits. But then, I think savings are still important and should be kept. Imagine having all of your money put into several investments and have an emergency that needs money asap.

[eightdots]

Well for me, saving isn't really a bad idea. We all have different reasons for saving money in bank. Like for example, someone is saving money in the bank for 3 years cause he has a plan of using the money to buy an asset or a property. It’s not like everyone is saving money in bank for decades or until they grow old. Some people save money for a couple of years because they have a goal to achieve and they can’t do it yet in the mean time so they need to save up for couple of years to reach their target goal. Regardless if you save money in bank or not, inflation is there and a lot of people can’t cope up with the rise of inflation resulting to declining of purchasing power.

I also don’t like saving all of my money in bank cause it won’t really bring me that much compared to investing it. But i save some of it in the bank cause i have a separate goal/purpose for that. Then I put the rest in investing.

Saving money is necessary for many goals. You need a purpose for saving, and you need to use that money to achieve that purpose. In other words, turning your money into an asset can always be advantageous. The amount you save may vary depending on your goals, but the important thing is to save. Saving allows you to take advantage of opportunities. It also enables economic progress.

Both saving and investing are necessary, because investing can help you achieve many goals faster.

[silpersurfer]

Saving fiat money is not a good solution if you talk about value, inflation takes away the value of fiat money, as time goes by it continues to depreciate and that is why prices are now increasing so high, deposit interest is not comparable to inflation so it is useless if you rely on deposits as a way to get additional income, it is the same as experiencing a loss, if the interest is 5% and inflation is 7% it is still a 2% loss from the decrease in the value of your money.

[Cheema02]

There are still a lot of my countrymen that are not dealt with investing. What they do is they save their money in the banks and are fine with the few percentage of accrued interest for the time deposits that they do from the banking products that are offered to them. We've got also digital banks that offers better interest than the actual brick and mortar banks. I think there is a chance that a saver will eventually learn how to invest. They will understand why their money's purchasing power is decreasing and that's the time, they'll get curious about investing.

Yes, the importance of investing and its true that individuals in start save their money in banks but with the passage of time inflation increases which downs the purchasing power of individuals because inflation beats their saving so its push them for investing. So they starts to collect information about investing or small businesses. In this way digital banks have planes but the best thing is wise investment and with smart thinking people gradually growing their savings faster than inflation which give them future security for communities. And a simple awareness about finance can prove best for individuals and they creat good habits and make strong decisions for management of their finance. This step gives them future security anr also helpful for next generation to survive in harsh conditions.

[crwth]

The majority of people who study how to be financially free probably know this. I guess it depends on the intended purpose of your money, because right now I am just saving fiat while I wait to purchase more bitcoin in my region of interest, then average out my entry.

There are probably ways to make sure you don't lose value, and having a hedge would help you as well. Not just saving, but in the current market, it's hard to determine the best approach to investing, so you might as well hold it. This is my situation now.

[Y3shot]

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

It is nothing new to know that fiat that if left in the bank is losing value everyday bit most people thinks banks are the safest place for their money to remain untouched but the more the money is left in the bank is the more the money loses value. This is is why it is very good that we have bitcoin in this time that money is losing value so much compare to many years long before now.

Many people believe because their money is being fixed and their are no visible volatility that can reduce the amount of their money then bank is good. Because bitcoin is very volatile and it can reduce figures when it falls, then bitcoin is very risky to invest, which they dont know bitcoin is a a good store of value for an increase of money.

[Zlantann]

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

Keeping fiat in a bank account is like opening a hole under a drum filled with water. Inflation will gradually make the money lose value overtime. Even those who put fiat in fixed deposit also lose money because since the rate of inflation is higher than the interest on the deposit. Bitcoin has proved to be a good hedge against inflation. Precious stones like gold and silver also preserve the value of money. So it will be better to invest money in an asset than keeping it in the bank.

[Somto9Light]

Keeping fiat in a bank account is like opening a hole under a drum filled with water. Inflation will gradually make the money lose value overtime. Even those who put fiat in fixed deposit also lose money because since the rate of inflation is higher than the interest on the deposit. Bitcoin has proved to be a good hedge against inflation. Precious stones like gold and silver also preserve the value of money. So it will be better to invest money in an asset than keeping it in the bank.

I don't think it's safe to hold or keep fiat around us because inflation is just roaming about, yes if it was before putting our fiat in  fixed deposit seem like a good idea because there are some interest that add up to it but this current stage inflation has turn everything upside down as I don't find putting my fiat in fixed deposit as a good option.

 You're right investing our money is just the best option but while doing that you need to look for a better thing to invest because there are choice of Investment you will make and still get affected by inflation.

[Felicity_Tide]

~snip

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

It's unfortunate that this is where reality and the negligence of a very few has led us to in a very short time. Of course, the negligence of those who are supposed to be your government, led to all this, but nobody is asking questions... They still teach our children that it is important to save money in the bank, when that same money doesn't return the same due to differences in purchasing power.

Well, for those who actually knows what they're doing, having an investment is not longer a new discussion in the society. Those who are smart enough, understands the role that investments plays in keeping ones resources almost intact despite with the inflation. From digital assets, to restate, to stocks, etc, you just don't want to be caught up in a false reality of savings, especially when you have a lot of resources to protect from inflation.

[batang_bitcoin]

I will still commend people who are so responsible with their money and they save it. While we know that its value losses over time due to several factors. But, saving builds discipline and they are also learning to grow it when they have seen that their spending power is decreasing. I like it when the title is made about savers losing their purchasing power and not intended to say that they are 'losers'. Because many financial guru says that savers are losers but they're not. That's just the start of their way to financial freedom.

[bhadz]

There are still a lot of my countrymen that are not dealt with investing. What they do is they save their money in the banks and are fine with the few percentage of accrued interest for the time deposits that they do from the banking products that are offered to them. We've got also digital banks that offers better interest than the actual brick and mortar banks. I think there is a chance that a saver will eventually learn how to invest. They will understand why their money's purchasing power is decreasing and that's the time, they'll get curious about investing.

Yes, the importance of investing and its true that individuals in start save their money in banks but with the passage of time inflation increases which downs the purchasing power of individuals because inflation beats their saving so its push them for investing. So they starts to collect information about investing or small businesses. In this way digital banks have planes but the best thing is wise investment and with smart thinking people gradually growing their savings faster than inflation which give them future security for communities. And a simple awareness about finance can prove best for individuals and they creat good habits and make strong decisions for management of their finance. This step gives them future security anr also helpful for next generation to survive in harsh conditions.

The growth of people's savings through any means that they know, with the banks, digital banks or even with any investments are not that fast. It's a steady growth because they're looking forward to have it in the long run. Their good habits is going to make their savings bigger when they have come to realize that it's best to be disciplined in doing it rather than spending into things that they don't need anymore. So from discipline and having a good habit, despite that the savings they have are losing its value, they're adding more to it and learning how to invest too.

[STT]

Many arent quiet, its led to some upsetting election results from angry voters so much disquiet is the case.  The Arab spring was out of similar disruption I think in the global economy, failed food price inflation led to great upsets.
   
Its not a surprise exactly, the origins of Bitcoin itself is out of such disturbance and noticeable failure I think help form some of the incentive to make this blockchain and hope to keep it seperate from centralized powers that devalue money constantly and undermine the general population